According to a 2012 news release from U.S. Attorney Patrick Fitzgerald, Spaulding defrauded Freedom Bank in Rock Falls and Sterling between 2007 and 2009; UnionBank in Tampico between 2006 and 2007; and BMO Harris Bank (then Amcore Bank) in Sterling in 2005.

Spaulding is a former YMCA board president and Sterling Today Inc. board member.

According to SVM files, Spaulding was senior vice president of commercial lending at Freedom Bank, a vice president and senior commercial relationship manager at UnionBank, and a vice president at Amcore.

According to the indictment, Spaulding, who was responsible for reviewing and approving commercial loans at each bank, defrauded them by:

n Approving loans and loan increases for family members without disclosing his relationship with them to the banks.

n Approving loans and loan increases in which the borrowers agreed to pay part of the loan proceeds back to Spaulding, without disclosing that to the banks.

n Characterizing loans as “commercial loans,” which allowed him to approve higher amounts than he otherwise could have authorized.

How much money Spaulding may have garnered was not disclosed, but he used the money for “his own purposes,” the indictment said.